“What is the standard fixed recipe to be able to change permanently?” I often come across that paradoxical question.Your question is a variant thereof.
TL; DR There is not one “themost important things”.
Side Note: Bad answers to this question are always about the romantic image of the young hero.”It’s In your blood” (genetic abnormality), “It’s about perseverance” (eccentric fool), it’s about brilliant insights (luck). Weird enough is the image of the average Dutchman so “Monomane killed students who maintain that they have found the egg of Columbus.” The most successful startup entrepreneurs know their industry, have a network, are averaging 45 and never in their uppie.
As an entrepreneur, you invest time, money, work and management skills.In this way, you invest in a portfolio of participating interests in different types of companies. You do not balance any significant interests in
- Existing companies.
- Set up companies based on proven business model.
- To set up companies that are looking for a business model.
An entrepreneur who only invests money in the last kind we call a startup investor.Someone who mainly invests time and management skills… A start up entrepreneur.
A startup entrepreneur is therefore someone who invests time and management in yet to be set up companies (often only one) who aim to find a business model.
The management skills that a startup entrepreneur brings in is -again -about portfolio management.The good start up manager pivots quickly and cheaply through a series of successive and similar candidate business models.After all, a candidate business model is still full of risky assumptions about purchasing and especially sales markets. The faster and cheaper a business model is found that keeps water the better the return.
Investments with a high risk content attract gamblers.The recipe for gamblers is simple: “Everything on the jackpot”. A lot of wannabe startup entrepreneurs thinks so. A real entrepreneur avoids risk like the plague. The most important things that every entrepreneur should do is make well-informed investment decision within a risk-lowering portfolio.In addition, a startup entrepreneur has to make investment decisions about still-to-be-established companies with currently candidate business models.
Risk is not return
That is a weird but important insight.Taking maximum risk (being opinionated, not validating, not controlling) does not automatically mean maximum return. The average return on the risk profile of portfolios of gamblers is many times lower than that of “entrepreneur” entrepreneurs. The will to dare to check assumptions especially with regard to risk and return is what an entrepreneur distinguishes from non-entrepreneurs.